Selling your home? Brace yourself! New research reveals estate agent fees have jumped by as much as 21% since 2019, adding thousands of pounds to the cost of moving.
The analysis by Open Property Group highlights how much more expensive selling a property has become, despite a slight dip in average estate agent commission rates.
Five years ago, the average UK house price stood at £230,612, with sellers typically paying a 1.53% fee, costing around £3,528.
Fast forward to today, and while the average commission rate has fallen slightly to 1.42%, soaring house prices mean sellers are now forking out a hefty £3,980 – that’s £452 more than in 2019, representing a 12.8% increase.
Regional Differences – Where Are Fees Rising Fastest?
The North West takes the lead as the region with the highest surge in estate agent fees, with sellers now paying a staggering 21.1% more than they did five years ago. The average fee in the North West has jumped from £2,516 in 2019 to £3,047 today.
Other regions hit hard by rising fees include:
- Northern Ireland (20% increase)
- Wales (19.4% increase)
- Yorkshire & Humber (16.3% increase)
- East Midlands (15.6% increase)
- Scotland (14.8% increase)
- West Midlands (14.9% increase)
- South West (14.4% increase)
- North East (14% increase)
London bucked the trend as the only region where estate agent fees have actually decreased, albeit marginally, by 0.5% over the past five years.
The Hidden Costs of Selling on the Open Market
Jason Harris-Cohen, CEO of Open Property Group, warns sellers to be aware of the hidden costs associated with selling their homes: “Many people don’t realise how much it costs to sell a home. Agency fees, which amount to thousands of pounds, are just one of many outgoings that sellers face. The longer your property sits on the market waiting for a buyer, the more these costs go up.”
Harris-Cohen highlights the financial drain of mortgage costs, insurance, utilities, and other expenses that sellers must continue paying while waiting for their property to sell.
With experts predicting a resurgence in the UK property market in the latter half of 2024, house prices and estate agent fees are expected to continue their upward trajectory.